A business plan is a recognized record set of business objectives. It may hold the background about the organization or team attempting to attain the goals. Business plan may also focus variation in opinion and branding by the consumers, client, to the public. Budgeting is an essential part of a business plan because; it improves communication and coordination. It enables the firm to explain what is needed where and at what time. There is also good coordination within the different departments in the MRI clinic because everything had been budgeted for before the business is started. There is no running out of stock. Budgeting can also be used to determine and evaluate the performance of the business. It will help the management of the clinic to know how much profit or loss one is making in a business. The budget enables the management to know how the business is fairing. It enables the firm to determine the capital which was invested whether has been recovered. Budgeting will also suggest the performance of the MRI clinic and solutions needed for unfavorable state of matter. If the business is faced with problems, budgeting will help one to find a solution to the problems. The budgeting ensures that every amount of money to be used is counted for thus there is no way the organization will spend more. A breakeven analysis will help to determine how much sales MRI clinic needs to start making a profit. It will help to plan ahead the amount of money needed to grow the clinic.
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The management of the MRI clinic can use the breakeven formula to measure MRI clinic progress towards profit-making goals
It will help the employees to think about the clinics progress toward profit goals. The breakeven analysis will help the firm to know its sales level thus; they can break the sales level down into the amount of customers required. Financial statement information would provide a structure to the way finances are handled within the MRI clinic. It also enables the clinic to be in a position of managing the way cash in and out are flowing within the organization. The ratio analysis would be used to measure how efficiently the clinic generates its profit. They will also be used to determine how well the clinic is managed from various angles. The ratio analysis enables the firm to know how much cash a firm generates from revenue to meet its financial obligations. They are also used to determine the attractiveness and value to a firm from an investment perspective. Financial statement enables the firm to know how it's performing within the various areas of the firm (Pinson, 2008). Business planning can be an important tool while starting a MRI unit. It will be easy to forecast what the clinic is doing and where the firm is heading. When changes occur due to environment, one can be flexible. Business planning is a focusing device which will help the MRI clinic to be a long-term business. It may help the firm to project into the future and not to get discouraged by the steps involved to start it.
Business planning will explain how the MRI unit will operate in the marketplace. It will explain what kind of treatment the firm will be offering and the type of customers who will be attending it. Business planning is created to explain and illustrate the vision the firm pertains. For example, starting the MRI clinic will persuade others to help the firm to achieve its vision. In order to achieve this, one has the need to demonstrate on the paper how the clinic is going to be like. Business planning will help the MRI clinic to have the best team by explaining it in a presentable format. The people with qualifications of a certain department in the clinic will come together and come up with effective outputs. Business planning will help in managing the clinic. This will help him to know how many workers he needs in the clinic, the type of drugs needed, and the cost to be incurred while buying all the materials. The cost of paying his staff and all other cost that are needed in various departments in the firm. He will also be in a position to know the problems affecting his firm so that he can deal with them immediately. Business planning will help the clinic to achieve the set goals. This will be achieved by providing better services to the patient, the management will ensure that every employee is committed to his duties in order to minimize the cost of operation and provide better services to the customers fully. The firm will also make sure the set rules and procedures are followed in the right way. The employees will also work as a team in order to help each other in areas where one has no skills enabling them achieves their goals. Planning in the firm will help to determine the visibilities of one's idea. This enables one to predict how the future will be. The firm will have the necessary plans to deal with those unseen problems at that time thus the firm will not be affected. This will enable it to achieve its objectives. The business planning will help the firm to get any kind of help from potential financier. The drafted document contains all the details of the clinic thus they can go through it and see it purposes and the need of having the firm in the desired place (Peterson & Jaret, 2010).